Uber Eats Makes Significant Inroads with Food Retailers

man with Uber eats backpack

Consumers in over 400 cities can now have their groceries delivered by Uber.

The company’s Uber Eats division recently partnered with 1,200 Albertsons-owned stores, as well as 25 Costco locations across Texas—marking Uber’s first pilot with a U.S. food wholesaler. The companies join retailers such as Southeastern Grocers and New York’s Red Apple Group on the platform.

“This past year has been one of incredible growth for grocery delivery,” said Raj Beri, Uber’s Global Head of Grocery and New Verticals, in a press release. “Today nearly 3 million consumers order groceries and other essentials each month through Uber and we’re just getting started.”

Uber Pass and Uber Eats customers will get free delivery on all orders over $30 from Albertsons stores. Costco will have a similar offer, except its minimum order is $35.

“One thing we know to be true is that people across the U.S. are looking for convenient and affordable ways to stock their pantries without leaving home—especially for last-minute must-have items,” Beri added.

The news follows rival DoorDash’s similar expansion into grocery delivery last month—also partnering with Albertsons. In 2020, DoorDash got into the convenience store business with the launch of a virtual chain called DashMart, selling snacks, groceries, and other food-related products from partner restaurants.

Meanwhile, Uber is aiming to expand its delivery business and reach into industrial shipping services with the acquisition of tech firm Transplace for $2.25 billion, reported The Wall Street Journal (July 22).

The company is seeking to use its freight division to bring greater efficiency through digital bookings to the domestic shipping sector. However, it faces strong competition from traditional middlemen.